Quick answer
To read a pay stub, start at gross pay (total earnings before deductions), review the taxes and other deductions listed below it, then confirm net pay — the amount you actually take home. Year-to-date columns show the running totals for the year.
The three main sections
Almost every pay stub is organized into earnings, deductions and a net-pay summary. Reading them in that order makes the document easy to follow.
Earnings
This section lists what you earned during the pay period — regular hours, overtime, bonuses or commissions — and adds up to your gross pay.
Deductions
Deductions are amounts subtracted from gross pay. They include mandatory taxes (federal income tax, Social Security, Medicare, and any state or local taxes) and voluntary items such as insurance premiums or retirement contributions.
Net pay
Net pay is gross pay minus total deductions — the money deposited or paid to you.
Understanding the columns
- Current: the amount for this pay period
- Year-to-date (YTD): the cumulative total for the calendar year so far
- Rate and hours: shown for hourly earnings
Read a pay stub example, line by line
First check the employee, employer, pay period and pay date. The period describes the work covered; the pay date records when payment is made. Then read the current column before checking year-to-date totals.
| Line | What to check | Current amount |
|---|---|---|
| Regular earnings | 40 hours × $25.00 | $1,000.00 |
| Federal income tax | Illustrative withholding | −$100.00 |
| Social Security | Illustrative withholding | −$62.00 |
| Medicare | Illustrative withholding | −$14.50 |
| After-tax benefit | Employee deduction | −$50.00 |
| Total deductions | Count each deduction once | −$226.50 |
| Net pay | $1,000.00 − $226.50 | $773.50 |
The net amount is $773.50. If payroll splits it into $600.00 and $173.50 deposits, add both payments before comparing the total with the stub. See pay stub versus paycheck. Employer-paid benefits shown for information should not be subtracted as employee deductions.
Current pay and YTD are different columns
If prior YTD gross wages were $9,000.00, this $1,000.00 payment brings YTD gross wages to $10,000.00. Do not add current pay to a displayed YTD balance that already includes it. Compare each category separately, using the same employer and calendar year. Our YTD guide explains the running totals.
Common labels you may see
- Gross: earnings before employee deductions.
- FIT / FED: federal income-tax withholding.
- SS / OASDI and MED: Social Security and Medicare withholding; sometimes grouped as FICA.
- YTD: year-to-date total for that line.
- EE / ER: often employee / employer amounts. Confirm the payroll provider’s legend before subtracting a line.
For more payroll codes and column examples, use the pay stub abbreviations guide: FIT, OASDI, MED, EE and ER. Taxable wages can differ by tax. Do not assume the federal-income-tax wage figure also applies to Social Security and Medicare. See pre-tax and post-tax deductions for an example.
What to check when a number looks wrong
- Match the dates, hours and pay rate to your timesheet or pay agreement. Review overtime by workweek, not just total hours across a pay period.
- Check benefit elections and each tax line. Do not subtract a FICA subtotal again if Social Security and Medicare are already counted.
- Compare net pay with the payment record, including split deposits and separately identified reimbursements.
- Ask payroll about the specific line, pay date and difference. Keep the original statement and request a corrected employer-issued version if needed.
For a missing statement, start with your employer or payroll portal. Creating another document does not resolve an employer payroll error. See the pay stub accuracy checklist.
Further reading: the CFPB paycheck overview and IRS explanation of Social Security and Medicare withholding.
This article is educational and does not constitute payroll, tax or legal advice.
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